It’s no surprise how expensive medical school can be. Considering the length of study and the complexities of learning, any medical major’s tuition can add up quickly. Those who have taken out school loans while in med school will face the challenges of repaying these student debts.
If you’re planning to enter medical school soon, you’re probably considering what medical specialty to choose.
But if you’re thinking of how to deal with medical school debt after finishing school, don’t worry. There are some viable ways to manage your debts, like the ones detailed by https://medicalaid.org/ and similar sites. Think of your medical school journey as a financial investment; you’ll need to repay the investment after graduation, but you’ll start reaping the interest and rewards much later.
So, before you feel burdened and perplexed, consider the following tips on managing medical school debt effectively.
Start Paying During Residency
While in school, medical school loans accrue interest, and repayment begins six months after graduation. If you are in residency or fellowship, you can postpone student loan payments, but it will cost you. When you defer, interest accrues, increasing your balance even more. Therefore, the best solution is to start paying your debt when you start residency.
Consider making partial payments during residency to save on interest. When you start your residency, you can already have a means of earning money. Resident doctors indeed receive income rather than just allowances.
Although entry-level doctors earn far less than experienced and tenured ones, this is a great start to saving money so you can start paying for your medical school debt. The key is to live a well-balanced life as a resident doctor, manage your finances well, and remember to exercise and stay healthy, so you have the energy to repay your student debts in time.
Join A Repayment Program
Students make payments according to the amount they owe with traditional repayment plans. However, another alternative is to apply for an income-driven repayment plan. Your monthly payments are based on discretionary income, making them easier to manage for borrowers. Depending on your earnings, you can repay your debt at your earning pace.
Repayment terms can go up to 20 years, depending on the program you apply for. It’s essential to inquire early to know the best repayment plans suitable for you and your financial condition. Prepare a plan for how you will hold yourself responsible for paying for your studies. Stay on track with your repayment plan by keeping your expectations realistic.
Get Smart With Your Finances
You will be more successful at managing debt if you are smarter about finances. Managing your finances helps you realize your financial goals, including repaying your medical school debt. Understanding finance will also help you evaluate a loan, credit card, and line of credit opportunities to the best of your ability. When you know how to handle your debts, you can make a solid financial plan to manage your income and expenditures.
Additionally, it assists you in keeping track of ongoing expenses and saving for emergencies, retirement, and other goals. There are various ways to learn more about financial planning. You can seek out a financial advisor’s help or talk to a fellow doctor who has had the same journey as you. You’ll be able to learn from their past strategies and finances too. Take advantage of any financial literacy resource and apply it in your career and life.
Consider Applying For Loan Forgiveness
Another option for you to handle your medical school debt is to apply for loan forgiveness. Fortunately, there are several programs available for this option. You may qualify for loan forgiveness if your career goals match these programs.
Loan forgiveness for doctors can be combined with another repayment strategy, but this will depend on what kind of loan you have.
Lenders are more likely to offer low-interest rates to medical degrees due to their high earning potential. It is one good reason to consider refinancing. Many private loan companies may offer lower interest rates that you can work with. Saving thousands of dollars on interest for your loan is possible if you find a lower rate on refinancing.
A high-income relative to your debt is required to qualify for the lowest rates. Refinancing medical school loans may be good before or after your residency.
Medical school debt is a growing concern for many would-be doctors as medical tuition fees get increasingly expensive. However, with careful financial planning and considering the tips above, it’s more than possible to graduate from your debt sooner than you anticipate. There’s nothing wrong with feeling overwhelmed and not knowing what to do next. But once you focus on how to handle your medical school debt, you’ll be able to focus on repaying them aggressively in the coming years.